She told parliament in Berlin that the proposal for "eurobonds" went against Germany's constitution.

BBC: Merkel rejects sharing eurozone debt through bonds

All of a sudden, though, Berlin is abuzz with talk of remaking the European Union: issuing joint Eurobonds, renegotiating the EU's treaties, even creating a federal Europe.

ECONOMIST: Charlemagne

Investors were furious that Eurobonds were to be included in Pakistan's debt restructuring.

ECONOMIST: Bond defaults

Last week Otmar Issing, a former member of the ECB's executive board, pointed out that eurobonds would lead to higher rates for countries like Germany.

BBC: Eurozone crisis: What Germany can learn from Italy

Still, the promised land of Eurobonds, and of the ECB lending to sovereigns, seems beyond the reach of today's politicians.

ECONOMIST: Charlemagne